18 May 2012
Section 40A(3) is applicable to expenses claimed under the head Income from Business or Profession.
Donation is not allowed as a deduction while computing business income.
Accordingly Section 40A(3) does not aplly to donations.
However, Section 80G has been amended by Finance Bill 2012 to provide that donations in excess of Rs. 10,000 shall have to be paid in any mode other than cash.
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